The United States and French energy major TotalEnergies (TTEF.PA), opens new tab said on Monday they would redirect nearly $1 billion from offshore wind leases to U.S. oil and natural gas production.
According to Reuters, the agreement marks a new strategy in the Trump administration’s wide-ranging effort to stymie development of U.S. offshore wind projects, which President Donald Trump has said he finds ugly, costly and inefficient.
His administration has moved to increase domestic fossil fuel production and scrap policies that support clean energy development.
“This agreement is yet another win for President Trump’s commitment to affordable and reliable energy for all Americans,” Interior Secretary Doug Burgum said in a statement. “Offshore wind is one of the most expensive, unreliable, environmentally disruptive, and subsidy-dependent schemes ever forced on American ratepayers and taxpayers.”
The U.S. will reimburse Total around $1 billion that the company paid in lease purchases for offshore wind, and TotalEnergies has pledged not to develop any new offshore wind projects in the country, a U.S. Department of the Interior statement said.
